The Trump administration says it is working to provide tens of billions of dollars to Argentina’s President Javier Milei, in a financial bailout that many critics say clashes with President Donald Trump’s “America First” platform.
The U.S. State Department told Newsweek Thursday, for a different article, that the America First Foreign Assistance programs must align with administration policies and advance concrete U.S. national interests.
Why It Matters
On Wednesday, U.S. Treasury Secretary Scott Bessent confirmed the U.S. is in talks to provide $20 billion to Milei. The announcement comes months after the Trump administration dismantled the U.S. Agency for International Development (USAID) in an effort to instead support programs aligned with Trump’s “America First” agenda.
Argentina is one of the biggest South American economies, and has notable natural resources, including oil, gas, uranium and lithium, which are often used in batteries.
What To Know
Trump officials have repeatedly floated the idea that the U.S. will send money in support of Trump ally Milei in an effort to bail out the South American country. Earlier this week, the presidents, along with other economic policy Trump administration members, sat side-by-side at the United Nations General Assembly (UNGA) in New York.
Many critics have called out the move as Trump showing favor to an ally who is up against a midterm election in October. Trump endorsed him on Tuesday, saying, “I’m doing something I don’t often do … I’m giving my full endorsement to him,” the president said during their meeting on the sidelines of UNGA, highlighting Milei’s economic reforms.
“We need to make Argentina Great Again, so it’s an honor for me to endorse,” Trump said, extending his MAGA catch phrase to the Southern Hemisphere. Milei also shares similar leadership styles to Trump.
In a Wednesday X post, Bessent said, the U.S. Treasury “stands ready to purchase Argentina’s USD bonds and will do so as conditions warrant. We are also prepared to deliver significant stand-by credit via the Exchange Stabilization Fund, and we have been in active discussions with President Milei’s team to do so.”
Some critics, as well as some allies, such as former White House chief strategist Steve Bannon, have expressed confusion and concern over the move, with Bannon writing on Gettr Thursday, “Wat.”
What People Are Saying
Neera Tanden, former director of the Domestic Policy Council during the Biden administration, said in an X post: “Someone needs to explain the rationale for cutting USAID but bailing out Argentina from their own whack policies.”
Senator Elizabeth Warren, a Massachusetts Democrat, said in an X post: “Donald Trump wants to lend $20 billion of our money to bail out a political ally and his global investors before an election. Oh, and Argentina just struck a major deal with China that crushes American soybean farmers already suffering from Trump’s tariffs. ‘America First.'”
President Donald Trump said in a Truth Social post on Tuesday: “Highly Respected President of Argentina, Javier Milei, has proven to be a truly fantastic and powerful Leader for the Great People of Argentina, advancing on all levels at record speed. He inherited a “total mess” with horrible Inflation caused by the previous Radical Left President (much like Crooked Joe Biden, the WORST President in the History our Nation), yet he has brought stability back to Argentina’s Economy, and lifted it to a new level of Prominence and Respect! We have had a tremendous relationship with Argentina, which has become a strong ally, thanks to President Milei.”
Tommy Vietor, former Obama and National Security Council spokesperson and Pod Save America host, on X on Wednesday: “Trump is going to give Argentina a $20 BILLION bank bailout!! This is America First???”
Anthony Michael Kreis, constitutional law professor, said on X Wednesday: “Can’t forgive American student debt; can prop up Argentina.”
What Happens Next
U.S. financial support to Argentina is expected to be finalized soon, with Director of the National Economic Council of the United States Kevin Hassett, telling Fox Business that “The U.S. will 100 percent support Argentina.”
Argentina’s midterms are scheduled for October 26.